Bob Dorf, serial entrepreneur and co-author of "The Startup Manual," on Lessons for Lean Leadership. Presentation delivered at the Global Entrepreneurship Congress in Johannesburg, South Africa (March 2017).

1. LESSONS FOR LEAN LEADERSHIP
BOB DORF
(not-so-lean) allegedly retired serial entrepreneur

2. Introduction:
30 seconds on Bob
• Allegedly retired…
• 30 years, 7 startups….2x2x3
• 10 years angel…27 deals, 7 IPO, 6 DTT
• Startup Owner’s Manual
• Teach/Coach/Train Trainers globally + Columbia

4. How Do You “Teach” Entrepreneurs
109 years later??

5. How Do You “Teach” Entrepreneurs?
#1 WAY: Lean LaunchPad
6-10 Weeks From an Idea to a Business

6. Steve Blank’s gift to Entrepreneurship:
The Lean LaunchPad
National Science Foundation
Startup Academy
Moscow
The Government of Colombia o Mexico’s INADEM o Dozens of Major Corporations

7. Lean LaunchPad: Class Organization
• Teams present every week
– Teaching team critiques
• Teams spend tens of hours outside the classroom
– keep a blog of their customer discovery
– Manage canvas and feedback on
LaunchPadCentral.com
• Lectures are minimalist; interaction drives
learning
• Syllabus and slides on-line to augment, not
replace

8. Lean LaunchPad: Student Selection
• Students apply as a team
– Their application is their business model canvas
– Interdisciplinary business and engineering teams
• Select for teams, not ideas
• Get a commitment upfront to work like a startup

9. Example of a
Lean LaunchPad Team Blog

10. Lean LaunchPad: High School?
• Likely more than most students can cope with
• Use only the RIGHT side of the canvas
• Think hard about Udacity, book, other “tools”
• Study the Valley’s Hawken School(www.sb.com)

11. Lean LaunchPad: High School?
• Likely more than the students can cope with
• Use only the RIGHT side of the canvas
• Think hard about Udacity, book, other “tools”
• Study the Valley’s Hawken School(www.sb.com)
• Encourage students to critique one another
• Encourage students to reach out to “real world” mentors
• TEACH: math, critical thinking, ideation
• COACH: presentation skills, entrepreneurship

12. Teaching/Coaching Startups:
the New Lean Way

13. Step 1:
Decide what type of Entrepreneurship
you’re teaching

14. Step 1:
Decide what type of Entrepreneurship
you’re teaching
Small business? Social? Scalable?
Buyable? Corporate?

15. Step 2:
Embrace Search Versus Execute

16. Step 3:
Start By Teaching the
Business Model Canvas

17. Step 3:
Start Teaching the Canvas
Small Business equally powerful
Teach only the “right side”

18. Step 4:
Start Teaching Customer Development

19. Step 4:
Start Teaching Customer Development
Level of intensity can vary – but getting
out of the classroom is the key

20. Step 5:
Coach’em, Whip’em, Cuddle’em

21. Mentor/Advisor Philosophy
You are their first “outside board director!”
This works well for me…
• I own 100% of the company I’m coaching
• …but the startup team has 5 year contracts
• SO…how do I encourage, course correct
• …and how do I guide them toward
“repeatable, scalable, profitable” for us all
21

22. Our Job as Teacher/Coaches:
• Help teams set reasonable, measurable goals
• Make goals measurable, “one step at a time”
• Calm down the “Mark Zuckerbergs”
but push and inspire those with the innovation and talent to be the next one!
• Get them on a detailed (weekly) work plan
• …and hold all team members accountable
• …be a parent, not a friend. Drive’em hard!
After all, if they get an investor, that’s just what s/he will do!
22

23. Lean Startup mentoring philosophy
• We always try to replicate real “Startup Culture”
– Mentors are tough, direct, fair - students need to be the
same
– Startup culture has no hierarchy – everyone is an
entrepreneur – a team member, not a bigshot
• Question, challenge teams, push as hard as you can
• Expect—and push--teams to work relentlessly
• Remind them that success is by no means guaranteed
23

24. “Get Out of The Building” is Crucial
• Lectures seldom hold the key to success
• Success is not about your homework
• Success comes from the work your entire team
does outside the building…so kick’em out!
• Great products are worthless without customers
• …and finding customers is the #1 challenge
• YOU must keep teams focused on customers
24

25. The Role of Mentors or Advisors
You are their first “outside board director!”
This works well for me…
• I own 100% of the company I’m coaching
• …but the startup team has 5 year contracts
• SO…how do I encourage, course correct
• Be disappointed, not angry
• Be available as you can be…face to face always preferred
• And don’t hesitate to ask colleagues for help with
tech or marketing you don’t know well…or for finding b-to-b interviewees
25

26. The Role of Mentors or Advisors
Important things TO DO:
• Remember, these are usually raw, early startups
• Our opinions don’t matter-push customer opinions
• Know what you don’t know…ask for help
• Suggest companies, ideas they can learn from
• Try hard to meet face-to-face every week
• Co-create and HOLD THEM to weekly work plan
• Get to know your team members personally
26

27. How Mentors Help Teams
• Questions from the mentors to their teams
that are helpful are:
– Have you considered X?
– Why don’t you look at company Z and see what
their business model is and compare it to yours.
– Here are some names of domain experts in the
field, you should talk to them.
• Try to avoid telling them exactly what to do.
27

28. Rolodex help:
“Why don’t you call X?
Let me connect you!”

29. Help them get help:
“We need to get an expert in….”
“My team is really struggling”

30. Kick their butts:
“Joe isn’t doing his share of the work”
“You’re not leading your team”
“You ladies are running way behind”

31. The Role of Mentors or Advisors
Important things NOT TO DO:
• “How I did this at my non-tech company”
• Tell too many stories(be sure to remind ME!)
• Lecture, give tests, or “normal teaching stuff”
• Worry too much about patents, legal, etc YET
• Offer or refer any paid service providers
31

32. The Role of Mentors or Advisors
Important things NOT TO DO:
• “How I did this at my non-tech company”
• Tell too many stories(be sure to remind ME!)
• Worry too much about patents, legal, etc YET
• Offer or refer any paid service providers
• Accept “we think” or “we know.” Only customers know!
• Make decisions FOR the team…
– “You might want to consider….”
– “Maybe text X against Y vs Z”
32

33. In summary…my view of the mentor’s role:
Help turn an Idea into a Business
• How do you turn an idea into a business?
– Start with a refined Business Model
– Recognize that it’s all GUESSES
– Search for product/market fit
– Use Customer Development to test the team’s
business model(s)
– Get “out of the building” and talk to customers
33

34. Typical Short-term challenges

35. #1. Your Team’s Not Doing Enough
Work to make real Progress
• Start with an open, honest discussion, preferably in person
• Consider a solo chat with the team leader first
• Understand why they are not doing the work: frustration,
lack of knowledge, fear of making calls/connections, lack of
time, lack of interest, enthusiasm, etc.
• Play Parent: comfort, support, encourage, problem-solve, join
teams in discovery
• Refer them to re-visit a Udacity lecture, to read a section of
the Startup Owner’s Manual, or slides and blog posts from
www.steveblank.com where it will help
35/29

36. #2. Discovery Efforts are
Not Leading Anywhere
• Thoroughly review all the team’s findings so far in a
group session they prepare for
• Are there 3-4 “lessons learned” from each finding?
Are they consistent, logical?
• Remember: it’s highly possible the idea isn’t strong
enough, or that nobody cares about the problem the
team is solving. Discuss whether it’s time to pivot
• Review the questions teams are asking. Consider
discussing situation with another coach
36/29

37. #3. Getting Discovery Back on Track
• Shorten the question list, re-edit the questions, do some
“rehearsals” with the team to see if they’re doing discovery
the right way (refer to the “How to” slide presentation)
• Make sure the team members are talking to the right people
• Determine if there is a better direction to take? Payers instead
of users, parents instead of kids, for example.
• Are channel or marketing partners key issues here?
Are they being interviewed at all? Well?
• Are some team members better at discovery than others?
Should the weak ones be assigned other tasks(online research,
product development, etc.)
37/29

38. #4. The Impact of
Competitive Analysis
• Where does the startup fit in the market?
• Can you help the team identify its five closest
competitors and create a “grid” of the value
proposition for each…and then find the unique value
proposition differentiators for your team?
• If not, a pivot may be in order!
• Is it “still a business” based on the findings?
• Any ways to pivot toward uniqueness?
38/29

39. Part 2. Bigger, More Serious
Challenges

40. #1. What if it’s starting to smell like a
bad business idea?
• Are there any radical pivot opportunities you see?
• Can the audience be made MUCH smaller to see if
the team can find some early traction?
• Might it be better with a larger audience target?
Smaller/larger geography?
• Any “outlier” or crazy ideas from discovery that are
worth exploring with customers?
• Identify interviews that can help refine the idea
(industry experts, professors, journalists, founders)
40/29

41. #2. Team Frustrated. Bummed Out
and Slowing Down
This happens too… don’t be shocked!
• Brainstorm other ideas in the same space
• Is there any excitement around any business model
elements?
• Always explore how to start with a smaller idea or
customer segment
• Try creating 3-4 different business models around the
same core idea and compare/discuss the elements of
each?
41/29

42. #3. Team Dysfunctional.
Bad Chemistry
• cerveza time, first alone with the boss, then the bad
apple, then the team
• Founder/CEO has liberty to fire people
• Be sure the team is not lost without that person
• Cut this off fast…team can waste a whole week if not
done quickly!
42/29

43. #4. Product/Website Up, No Traction
• Use and inspect the product or site yourself. Carefully. Get help if
not your area.
• Check the “basics:” is everything working?
Did all emails really go out/get delivered, are adwords live, etc.
Try to place an order, call the phone…does the team respond?
• Group Read: Owner’s Manual-Optimization section
• Try “Special/Introductory Offers”
• Consider freemium or free time-limited trial
• Look at what the team’s competition is doing
• Get some press, do an event, blitz a campus
• Have teams invited all their emails, FB friends, Twitter followers?
43/29

44. Part 3: Once Customer
Discovery Begins
Before they get out of the building
to conduct interviews

45. #1. Helping the Teams Launch their
Customer Discovery Effort
• Don’t hesitate to do some customer discovery
interview role playing
• Consider reviewing the “How to Do Customer
Discovery” powerpoint and discuss
• Coach your teams to develop “pass/fail” tests for use
judging results?
• Do they know how to FIND the customers?
• Can you or your friends or other mentors help them
find the right customers?
45/29

46. #2. Help assess the team’s
learning from customer
interviews
• Has there been any consistently repeated customer reaction?
• Have any “wild ideas” come up that should be discussed?
• Anything that indicates a change in the canvas?
• Anything indicating further narrowing of Customer Segment?
• Is feedback adequate to change the business model?
46/29

47. #2. Help assess team learning
from customers
• Has there been any consistently repeated customer reaction?
• Have any “wild ideas” come up that should be discussed?
• Anything that indicates a change in the canvas?
• Anything indicating further narrowing of Customer Segment?
• Is feedback adequate to change the business model?
• What’s enough feedback?
…Generally, a solid majority (~20+) saying same thing
• Never hesitate to say “get 10 more customers to confirm” or
“now interview bosses…or spouses…or payers”
47/29

48. #3. Critique the discovery feedback
as if you invested your own money
in the company:
• Are the reports deep enough to help you decide?
• Do they summarize key good/bad findings
• Are conclusions emerging? Are they right?
• Poke’em, prod’em, Cheerlead, kick ass
48/29

49. #4. End Each Meeting With a
Clear Action Plan
• Determine who will do what specific tasks by
your next team meeting
• Create a simple one-page list
• Put name/number next to each key task
• Make sure teams know questions to be asking
• Make sure part of the team is building product
49/29

50. Part 4. Conclusion/
In General…

51. #1. Stay in Touch with Your Team
• Call or email the weakest links in the team
• Try to reach each team member two times per week,
at least via email
• Encourage them to email/call with questions, strange
findings, frustrations, problems
• Send “mass team” emails with ideas and check-ins
• Send them back to Udacity or the Startup Owner’s
Manual if they’re lost, have questions
51/29

52. #2. Be as accessible as you can
• Phone calls are always better than email
• Attend/critique at least some discovery visits
• Try to meet around a meal wherever possible
• Invite people with problems for private coffees
• Kick ass with low performers privately
• Celebrate individual successes via email
• Give guidance, but don’t be prescriptive or make key
decisions for the team
• Cite your personal experience wherever you can
52/29

53. #3. Remind teams to be focused on
their competitive ecosystem!
• What are the competitors doing? Who’s looking?
• Look at the competitors websites or PR releases
• How does competition change Value Proposition?
• Has the research been thorough enough
• Make sure your team creates its “map” of
competition
• Are you confident the startup has a clear, distinct
place inside its competitive map?
• Don’t be afraid to assign more homework
53/29

54. #4. Always be asking for Proof
“We think” are the worst two words teams can use!
• Ask to see notes from customer conversations
• Be sure people aren’t “making it up” trust me, they do!
• Be sure discovery is never with their friends, who’ll
always “like” everything
• Make sure team covers all key discovery targets
• Some need very key partners (insurance, marketing)
• Some need to know if advertisers will spend money
• Some need to know if channel will sell the product
• Everyone needs to know how customers will find them
54/29

55. #5. Don’t Worry about Scaring Teams
Sadly, as we know, most startups will ultimately FAIL
• Never be afraid of asking “Sure you want to do this?”
• Remind them of the investment they are all making
• Point out weak, inconclusive, lazy interviews
• Demand tight summaries of “lessons learned”
• ENCOURAGE teams when they’re “down…”
• Teams will be down and you should spot it early
• Remind them: YOU are on their team and eager to help
them succeed
(but also remind them the hard work is theirs)
55/29

56. #6. Remind Your Teams:
this is NOT a Race!
• There’s no magic to finishing the process by semester’s end
• There is no reason to skip a discovery step
• No startup has ever gone from idea to great in 5-8 weeks…
….this is just the beginning
• Don’t hesitate to add tasks, interviews
• Never fear opening discussion of a major pivot
• “Complete” is NOT success; “Great” is the only success
• Be sure all agree to the next weekly work plan
• This is HARD. It’s never to late to pivot or restart
56/29

57. #7. Have FUN
• These are bright, motivated entrepreneurs. Enjoy’em
• Create contests, games to find the greatest “outlier”
ideas, the smartest or boldest pivots, places to
interview the most customers, best
questions/answers, etc.
• Beer works great!
• Be a part of your team…watch them learn from you
and from customers
• …and most of all, enjoy yourself!
57/29

58. Never Forget: This is HARD!!
• Don’t tell’em…show’em how to learn
• Keep the pressure on the search
• Celebrate and learn from the Pivots
• Avoid prescriptions, try suggestions
• Avoid “here’s how I struck it rich” tales
• Coach and check on your coaches

59. Use great tools:
• www.Kauffman.org
• www.coachmypitch.com
• www.steveblank.com
hint: startup tools rocks
• The Startup Owner’s Manual Blank & Dorf
• Business Model Design Osterwalder

60. RULES:
Embrace the Search
Strive for GREAT!
Delay the Plan
Get’em Out of the Building
Keep pushing’em out and out
Catch’em when they fail or fall
(oh yeah, have FUN!)

61. Would you like access to Bob Dorf’s
slide deck? Please email
academy@gibs.co.za and we will
share via Dropbox